In its latest report published on Friday, the UN food and agriculture organisation highlighted that most of the hidden costs of agrifood systems globally stem from health impacts linked to non-communicable diseases (NCDs), such as diabetes and stroke.
The report confirmed that hidden costs of getting food from farm to table can come around $12 trillion per year. Of this, $8 trillion arises from unhealthy dietary patterns and are linked to NCDs – that far exceed costs related to natural degradation and inequalities.
For this in-depth analysis, researchers used true cost accounting to expose the right costs and benefits of food production, distribution and consumption – shedding light on the so-called “hidden costs and benefits” not reflected in market prices.
Impact of unsustainable agricultural practices
The report released on Friday by FAO also highlighted that global hidden costs are largely driven by expenses related to health, and environmental degradation comes next, in more industrialised agrifood systems.
The natural impact of unsustainable agricultural practices is a key contributer to hidden costs. Costs linked to greenhouse gas emissions, nitrogen runoff and land-use changes are especially high in countries seeing a more diversified agrifood systems.
Poverty, undernourishment and other social expenses are most prevalent in traditional systems and those affected by prolonged crises. The report calls for collective action to make global agrifood systems more sustainable, resilient, efficient and inclusive.
